Terms in this set (157)
c) Payment history and outstanding debts
What two factors count for
65% of your FICO score?
a) Income and payment
history
b) Employment history and
outstanding debts
c) Payment history and
outstanding debts
d) Income and outstanding
debts
c) Fair Isaac Corporation
Which company has
developed the MOST
commonly used credit score
to evaluate an individual's
credit?
a) Experian
b) Transunion
c) Fair Isaac Corporation
d) Equifax
c) 760
You should try to achieve a
FICO score of at least
________ in order to receive
a top credit rating.
a) 840
b) 640
c) 760
d) 940
, b) 70%, and decreasing this ratio will help the credit score
What is the debt to credit limit
ratio for the following
individual?
Visa CardMaster CardCredit
Limit$10,000$20,000Balance
Due$2,000$19,000Available
Credit$8,000$1,000
a) 30%, and decreasing this
ratio will help the credit score
b) 70%, and decreasing this
ratio will help the credit score
c) 70%, and increasing this
ratio will help the credit score
d) 30%, and increasing this
ratio will help the credit score.
True
True or False?
It is possible that canceling an
old credit card with no
balance due could hurt your
credit score.
True
True or False?
If an individual gets several
quotes on a new mortgage
within a two week period, it
should not immediately
impact their credit score. The
credit score may later be
impacted by the size of the
mortgage and related monthly
payments.
, b) Apply in the name of the spouse with the highest score.
A married couple is applying
for a mortgage. One spouse
has a low FICO score and one
has a high FICO score. What
is their best strategy for
getting the lowest interest rate
possible?
a) Apply in both spouses
names since the banks will
use the higher score in
evaluating the mortgage
application.
b) Apply in the name of the
spouse with the highest score.
b) The treasury yield curve is normally upward sloping, with
long term rates being higher than short term rates.
Which of the following
statements is true?
a) You Answered The treasury
yield curve is normally
downward sloping, with long
term rates being higher than
short term rates.
b) The treasury yield curve is
normally upward sloping,
with long term rates being
higher than short term rates.
c) The treasury yield curve is
normally downward sloping,
with short term rates being
higher than long term rates.
d) The treasury yield curve is
normally upward sloping,
with short term rates being
higher than long term rates.
, True
True or False?
Having mortgage debt is
generally considered better
than having credit card debt.
False
True or False?
It is illegal for an employer to
review your credit report as
part of the application
process.
True
True or False?
Insurance companies are
allowed to review and
consider your credit score
before quoting a premium.
False
True or False?
Assume you have three credit
cards, each having a balance
due of $500 for a total of
$1,500. Each card has a
different interest rate ranging
from 12% to 20%. The
minimum payment on each
card is $10. If the minimum
payment is not made, there is
a $50 penalty.
If you only have $500 to pay
on your credit cards this
month, the best way to
minimize your interest cost is
to pay an equal amount of
money on each card.
True
c) Payment history and outstanding debts
What two factors count for
65% of your FICO score?
a) Income and payment
history
b) Employment history and
outstanding debts
c) Payment history and
outstanding debts
d) Income and outstanding
debts
c) Fair Isaac Corporation
Which company has
developed the MOST
commonly used credit score
to evaluate an individual's
credit?
a) Experian
b) Transunion
c) Fair Isaac Corporation
d) Equifax
c) 760
You should try to achieve a
FICO score of at least
________ in order to receive
a top credit rating.
a) 840
b) 640
c) 760
d) 940
, b) 70%, and decreasing this ratio will help the credit score
What is the debt to credit limit
ratio for the following
individual?
Visa CardMaster CardCredit
Limit$10,000$20,000Balance
Due$2,000$19,000Available
Credit$8,000$1,000
a) 30%, and decreasing this
ratio will help the credit score
b) 70%, and decreasing this
ratio will help the credit score
c) 70%, and increasing this
ratio will help the credit score
d) 30%, and increasing this
ratio will help the credit score.
True
True or False?
It is possible that canceling an
old credit card with no
balance due could hurt your
credit score.
True
True or False?
If an individual gets several
quotes on a new mortgage
within a two week period, it
should not immediately
impact their credit score. The
credit score may later be
impacted by the size of the
mortgage and related monthly
payments.
, b) Apply in the name of the spouse with the highest score.
A married couple is applying
for a mortgage. One spouse
has a low FICO score and one
has a high FICO score. What
is their best strategy for
getting the lowest interest rate
possible?
a) Apply in both spouses
names since the banks will
use the higher score in
evaluating the mortgage
application.
b) Apply in the name of the
spouse with the highest score.
b) The treasury yield curve is normally upward sloping, with
long term rates being higher than short term rates.
Which of the following
statements is true?
a) You Answered The treasury
yield curve is normally
downward sloping, with long
term rates being higher than
short term rates.
b) The treasury yield curve is
normally upward sloping,
with long term rates being
higher than short term rates.
c) The treasury yield curve is
normally downward sloping,
with short term rates being
higher than long term rates.
d) The treasury yield curve is
normally upward sloping,
with short term rates being
higher than long term rates.
, True
True or False?
Having mortgage debt is
generally considered better
than having credit card debt.
False
True or False?
It is illegal for an employer to
review your credit report as
part of the application
process.
True
True or False?
Insurance companies are
allowed to review and
consider your credit score
before quoting a premium.
False
True or False?
Assume you have three credit
cards, each having a balance
due of $500 for a total of
$1,500. Each card has a
different interest rate ranging
from 12% to 20%. The
minimum payment on each
card is $10. If the minimum
payment is not made, there is
a $50 penalty.
If you only have $500 to pay
on your credit cards this
month, the best way to
minimize your interest cost is
to pay an equal amount of
money on each card.
True
